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BAE Systems

HR Operating Model and High-Level Design

BAE Systems
Client BAE Systems
Region Australia
Sector Infrastructure, Defence and Transport
Offering Organisation Design
Action plan Capability assessment Leadership development Stakeholder engagement Target Operating Model (TOM) Value Chain analysis Vision development Ways of working

The Challenge

BAE Systems Australia are one of the largest defence contractors in Australia. Their HR function consists of ~150 people who are based throughout the country.  They had recently commenced a period of transformation, looking to become an organisation that is strategic, customer-focussed and forward-looking. A new enterprise operating model had been designed in which HR would have a larger role to play and needed to adapt in order to fulfil this.  Q5 were asked to help evaluate the current state of the function and off the back of this, design an HR Target Operating Model, high-level structure and an implementation plan.  

Our Approach

  • Over a 6 week period we engaged with the CPO and their direct reports through a series of 1:1 interviews and workshops. The approach used was Q5’s Metro Map starting with an as-is assessment of HR at BAE Systems. Operating principles were then agreed in a workshop which would act as guidelines for the design of the operating model and high-level design.
  • In order to build out a picture of where work should get done in the new world, we completed an activity analysis exercise with the HRLT. We used a BAE HR value chain that we had created in collaboration with the HRLT as the basis of this and decided where activities were executed; by the Leadership team, the Centre of Expertise, the HRBP, the Business or shared services. The activity analysis output was used to help draft the target operating model and high-level structure options.   
  • The existing BAE behaviours were used as the basis for future ways of working. The leadership team discussed and agreed how these would be brought to life in their day to day.
  • Finally, any existing initiatives or initiatives in the pipeline were prioritised and we created a plan of what the next 6 months would look like.   

Key Outcomes

  • An HRLT aligned on the future direction for the function
  • A plan for the next 6 months which addresses key areas of priority
  • TOM options with accompanying high-level structure designs to be iterated and a final version chosen by the HRLT
  • The BAE behaviours brought to life for this HR function
  • A list of potential risks to success and mitigations
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